Artificial Intelligence (AI) is definitely here and forever. IT and finance have fully embraced AI and are using it to support both existing solutions and innovation.
While there is no doubt that AI will bring about massive change, similar to what the Internet did in the 90s, it still has a long way to go.
Why logistics? Why now?
Now is the best time for artificial intelligence in logistics. Due to technological breakthrough, never before in the industry has there been so many technologies available and affordable. Companies that choose not to use AI risk becoming obsolete in the medium term because, believe it or not, AI will be a key component of the future of logistics.
Logistics companies are uniquely positioned to reap the benefits of virtually every aspect of the supply chain by adopting AI. Many companies are engaged in digital transformation, updating both software and hardware to prepare for the era of Logistics 2.0. AI can help the industry redefine business processes by making them proactive rather than reactive. We can stop planning and start forecasting; the process will become autonomous and the standard services will be personalized.
As with many other industries, AI can be applied both internally (back office) and externally (front office).
How to use AI in the back office?
AI provides a one-of-a-kind opportunity to save time, cut costs, and improve both productivity and accuracy. This is due to Cognitive Automation, which will perform routine tasks that would usually take time away from an employee’s more urgent work. Thanks to the combination of RPA (Robotic Process Automation) and AI, these day-to-day tasks will be performed by automated systems.
These automated routine tasks can be:
- Gathering financial information: Logistics companies often rely on many third parties to carry out the core functions of their business. AI can process all necessary financial data such as invoice amounts and other types of account information. AI can optimize time and money by processing and extracting financial information. The data will be presented in convenient interactive dashboards online.
- Processing customer information. Constant updating of customer information is an important task for any large company. Clustering and segmentation of customers will allow you to select the best rates and personalized offers to increase revenue.
- Customs clearance. Customs is usually a long and tedious process for everyone involved. Providing correct data and documents, declaring goods, checking information by customs authorities and determining the final customs value of each declared product is a long but necessary process for every logistics company. Instead of individually checking each document, artificial intelligence can process all documents in a matter of seconds.
Predictive Logistics: Operational Modernization
AI can help the logistics industry revolutionize its operating model from reactive to proactive and predictive.
– Predictive network management: AI can improve the efficiency of logistics operations. For example, DHL has developed a program that can predict delays in air transit. This helps the American company to activate mitigation measures, thereby preventing any delays on flights.
– Intelligent route optimization: for any logistics
It is important for the company to know how to find the most efficient, fastest and most suitable route for each client. This will cut costs, save time and improve customer satisfaction. Deutsche Post has adopted SmartTruck, which develops its own real-time routing algorithms for all of its operators and truck drivers. This allows them to deliver each of their packages in no time.